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Bill C-50 enacted - Issue about the TFSA
June 20, 2025
Federal Bill C-50, which included measures
announced in the 2008 federal budget, became law on June
18, 2008.
http://www.fin.gc.ca/news08/08-046e.html
One
key measure in Bill C-50 includes the Tax-Free Savings
Accounts (TFSAs). Beginning in 2009, Canadians will be
able to invest up to $5,000 a year in a TFSA. Investment
income earned in these accounts, including capital
gains, will not be taxed and withdrawals will be
tax-free. Ontario, Quebec and Alberta have announced
that they will harmonize with federal legislation
regarding TFSAs.
The outstanding question:
Why hasn't BC followed suit and announced plans to
harmonize with federal regulations concerning
TFSAs?
What are the implications if BC does not
harmonize its regulations?
Income reporting for
the TFSA will require a T5 slip or full reporting of
other types of income including T3 income or capital
gains reporting if the TFSA is not tax free income
provincially as well as federally.
Financial
institutions will have to provide income reporting for
provincial purposes. I would think that the pressure for
the provinces/territories will come from the financial
institutions who don’t want to have to report this
income as it will generate yet another type of report
requirement for only some provinces when others have
come on board.
Individual queries might also
be directed to the BC Minister of Finance, the
Honourable Carole Taylor, at her Victoria office, Tel:
250-387-3751.
Eileen Reppenhagen,
CGA
--
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